UK - The London Borough of Newham Pension Fund has awarded its first infrastructure mandate to Babcock & Brown, by allocating an initial £30m (US$61.4m) to the asset class, following a detailed study carried out by Hewitt.
Council minutes for the £618m fund stated: “It was reported that infrastructure investment is recommended for consideration by the committee as a result of the relatively high expected returns, low volatility and stability of income streams.”
The development comes after the fund had previously appointed Alliance Bernstein and AXA Rosenberg as global equity managers.
During that process, once the legal documentation had been agreed, the assets were transitioned from L&G to the new managers.
In its annual report, the pension fund also noted it would tender for a custodian, a position currently held by Northern Trust, over the course of 2006 and 2007.
In May, Global Pensions reported that JPMorgan Asset Management (JPMAM) was appointed to manage a £15m (US$30.7m) currency mandate for the borough. The assets will be invested in the JPM Managed Currency Plus Fund.
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